Suddenly it’s all Fire And Fury, and according to its author, Michael Wolff, no less than 100% of his sources in the White House told him the Donald is a “dope” or an “idiot” and is a “child” who has tantrums if he doesn’t get what he wants and get it right now.
We are pretty sure Mr. Wolff exaggerates. After all, Ivanka is apparently still trundling around 1600 Pennsylvania Avenue, yet how would she know?
More to the point, the Donald doesn’t have the Deep State and its collaborators in the media and among the Dems and establishment Republicans lathered-up in a Salem-style witch-hunt hysteria because he’s stupid. What he is is reckless, impetuous, undisciplined, glandular, petty, megalomaniacal, mendacious and uninformed—–and also in so deep over his head that even his signature orange comb-over will soon be fading from sight.
Yet there is something about Michael Wolff’s tirade that deeply resonates, albeit on the other end of the Acela Corridor.
We are referring, of course, to the “idiots” who are buying the S&P 500 at 2735 and earnestly debating the pros and cons of bitcoin at $16,000; and to the “boys and girls” (nee “children”) on Wall Street who have a hissy fit every time Washington—either via its central banking branch or statutory and fiscal tools—-even vaguely mutters about financial discipline or eventually cutting off all the fiscal and monetary free-stuff.
This morning, in fact, we heard one of the street’s permabulls describing the current madness as a state of stock market “nirvana” that will carry the S&P average to 3,100 in the near future.
That’s right. While that particular figure would equate to 29X LTM earnings for the S&P 500 and about 150X for the Russell 2000, it makes no never mind.
That’s because we have reached the ultra-FOMO (fear of missing out) stage of the bubble mania, where the only thing that matters is the price action. That is, what is being bought in the casino is what is going up, and for the sole reason that it is going up.